The Inflation Reduction Act (IRA) defines an “energy community” as a location that falls into one of three categories:
- Brownfield Sites: These are properties that may have difficulties in redevelopment due to the presence or potential presence of hazardous substances, pollutants, or contaminants. However, Superfund sites and other properties explicitly excluded under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) do not qualify.
- Coal Communities: This includes census tracts where a coal mine closed after December 31, 1999, or a coal-fired electric generating unit was retired after December 31, 2009. Directly adjoining census tracts also qualify.
- Statistical Areas: These are metropolitan or non-metropolitan statistical areas (MSA and non-MSA) where there is significant fossil fuel-related activity, defined as having at least 0.17% of direct employment or at least 25% of local tax revenues related to extraction, processing, transport, or storage of coal, oil, or natural gas. Additionally, these areas must have an unemployment rate at or above the national average in the previous year.
These energy communities are eligible for additional tax credits for renewable energy projects, aiming to incentivize the transition to clean energy and support regions historically reliant on fossil fuels.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-ira-define-an-energy-community/
